S. Korea to create cash support team for small firms

SEOUL, Nov. 16 (Yonhap) -- The government will create a cash support team for
small firms and exporters to prevent their bankruptcy amid frozen credit
conditions, officials said Sunday.
Prime Minister Han Seung-soo called for setting up the so-called "On-the-spot
financial support team" for small- and mid-sized companies, which are more
vulnerable to external financial turmoil, said Han's spokesman, Kim Wang-ky.
The government should "resolve their troubles as quickly as possible so that
export activities are not stalled due to delays in the financial or
administrative process," Han was quoted as saying in the meeting with financial
officials.
The special cash team will gather complaints from smaller businesses through the
government-run Small and Medium Business Administration and Korea International
Trade Association and deliver them to state financial watchdogs to help manage
their capital flows, officials said.
Companies have charged that government aid packages have been ineffective because
banks have not extended loans or provided payment guarantees.
President Lee Myung-bak in September called on financial authorities to keep
close tabs particularly on small firms.
In the latest move, the finance ministry said last week that it will inject an
additional US$16 billion into its financial system to ease the burden caused by a
dollar shortage on local companies importing raw materials and exporting goods.
hkim@yna.co.kr
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